Practice Problem: Statement of Cash Flows The Sainfield, Co. has just ended the 2012 production year....

   

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Practice Problem: Statement of Cash Flows The Sainfield, Co. has just ended the 2012 production year. The balance sheet and income statement are presented below. Two of the four key financial statements remain to be prepared for the stockholders' report. Assets Cash Accounts receivable Inventory Gross fixed assets Accumulated depreciation Net fixed assets Total assets Balance Sheet Sainfield, Co. December 31, 2014 and 2015 2014 Liabilities and stockholders' equity Accounts payable Notes payable Accruals Long-term debt Common stock at par Paid-in capital in excess of par Retained earnings Total liabilities and stockholders' equity $20,000 10,000 $ 1,000 5,000 7,000 $10,000 $23,000 $ 2,000 3,000 500 10,000 500 5,500 1,500 $23.000 $15,000 9,000 2015 $ 500 4,500 6,000 $6,000 $17,000 $1,500 2,500 500 6,000 500 5,500 500 $17,000 Income Statement Sainfield, Co. for the Year Ended December 31, 2015 Sales Cost of goods sold Gross profits Operating expenses Operating profits Interest expense Net profits before taxes Taxes (40%) Net profits after taxes $40,000 21,000 $10,000 13,000 $ 6,000 2,000 $ 4,000 1,600 $2.400 Calculate the amount of cash dividends paid during 2015. (2 points) Calculate the depreciation expense incurred during 2015. (2 points) Prepare a statement of retained earnings for the year ended December 31, 2015. Prepare the statement of cash flows for the year ended December 31, 2015. Evaluate the (3 points) results Practice Problem: Statement of Cash Flows The Sainfield, Co. has just ended the 2012 production year. The balance sheet and income statement are presented below. Two of the four key financial statements remain to be prepared for the stockholders' report. Assets Cash Accounts receivable Inventory Gross fixed assets Accumulated depreciation Net fixed assets Total assets Balance Sheet Sainfield, Co. December 31, 2014 and 2015 2014 Liabilities and stockholders' equity Accounts payable Notes payable Accruals Long-term debt Common stock at par Paid-in capital in excess of par Retained earnings Total liabilities and stockholders' equity $20,000 10,000 $ 1,000 5,000 7,000 $10,000 $23,000 $ 2,000 3,000 500 10,000 500 5,500 1,500 $23.000 $15,000 9,000 2015 $ 500 4,500 6,000 $6,000 $17,000 $1,500 2,500 500 6,000 500 5,500 500 $17,000 Income Statement Sainfield, Co. for the Year Ended December 31, 2015 Sales Cost of goods sold Gross profits Operating expenses Operating profits Interest expense Net profits before taxes Taxes (40%) Net profits after taxes $40,000 21,000 $10,000 13,000 $ 6,000 2,000 $ 4,000 1,600 $2.400 Calculate the amount of cash dividends paid during 2015. (2 points) Calculate the depreciation expense incurred during 2015. (2 points) Prepare a statement of retained earnings for the year ended December 31, 2015. Prepare the statement of cash flows for the year ended December 31, 2015. Evaluate the (3 points) results

Answer rating: 100% (QA)

a Calculation of amount of cash dividend paid during 2015 Retained Earnings balance as on 2014 500 A... View the full answer